|This course will provide a comprehensive and practical background on corporate finance, with an emphasis placed on practical applications. The course will combine the transaction experience of the instructor with a textbook, academic research, and case studies. This course is ideal for any student who is contemplating or pursuing a career in finance and/or business.
Corporate finance is about making the right investment (internal and acquisitions), valuation, financing, capital structure, shareholder payout, restructuring (divestiture, go private, spin off, etc.) and corporate governance decisions to maximize shareholder value. We will study most of these methods of creating shareholder value. Time permitting, we will also touch on private equity, hedge funds and leveraged buy outs.
The first part of the course will focus on discounting cash flows, discount rates, and the different types of valuation techniques for internal capital projects and acquisitions of companies. These will include the discounted cash flow method, the adjusted present value method, comparable trading multiples analysis and comparable transactions analysis. Then, we'll evaluate how companies elect to return cash to shareholders via share repurchases and dividends. The course will then evaluate a company's choice of capital structure, or the mix of debt and equity on the balance sheet, and we will study aspects of both debt and equity securities. Finally, we will study acquisitions and divestitures and as time permits, private equity, hedge funds and leveraged buy outs.
Course Format: The course will be a mix of lectures, classroom discussion, cases, and articles. We will reference current events in the financial news as much as possible. A mixture of a textbook, academic research, cases and financial press will be used for the reading.